Following the positive events on the spot Ethereum ETF front at the beginning of the week, there were significant increases in Bitcoin and altcoins led by Ethereum.
And in line with expectations, the SEC approved spot Ethereum ETFs yesterday.
While the rise in ETH, BTC and altcoins is expected to continue, all eyes are on Bitcoin and Ethereum options that will expire today.
According to the news of Singapore-based crypto options data platform Greeks.live, 21,000 BTC and 350,000 ETH options will expire on May 23.
Accordingly, while the Put/Call Ratio of BTC options is 0.88, the maximum loss point is $67,000 and the notional value is $1.4 billion.
Looking at Ethereum, ETH options have a Put/Call Ratio of 0.58, a maximum loss point of $3,200, and a notional value of $1.3 billion.
Stating that Ethereum took over the BTC rally, inspired by the positive developments on the ETF front, and experienced a 20% increase in one day, Greeks.live said that the upward trend of ETH is still strong due to its block trading and market trading structure.
What Does the Put/Call Ratio Indicate for Bitcoin and Ethereum?
The Maximum Loss Point often acts as a magnet for the market price as option sellers try to push the price towards this point to minimize their payout.
Looking at BTC and ETH, the market price of BTC and ETH remains above the maximum loss point, which may be a sign that the pressure on the BTC-ETH price will continue and there will be a correction.
Additionally, the Put/call ratio is calculated by dividing the number of put options by the number of call options. A ratio below 1 means there are more purchases than puts, indicating an upward trend.
A ratio above 1 means there are more put options than call options, indicating a bearish trend. A ratio close to 1 means the market is balanced or neutral.
For Bitcoin, this rate is 0.88; For Ethereum it appears as 0.58. Accordingly, the fact that this ratio is close to 1 for BTC indicates that the situation is balanced and neutral for BTC; It indicates a bullish trend for ETH. However, time will tell how these rates will affect the price. At this point, do not make your investment decisions based on a single data or report.
May 24 Options Data
21,000 BTC options are about to expire with a Put Call Ratio of 0.88, Maxpain point of $67,000 and notional value of $1.4 billion.
350,000 ETH options are about to expire with a Put Call Ratio of 0.58, Maxpain point of $3,200 and notional value of $1.3… pic.twitter.com/rftA9kBm4q— Greeks.live (@GreeksLive) May 24, 2024
*This is not investment advice.
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